Sentences with phrase «principal on the bonds»

Steve Forbes, CEO of Forbes, Inc. and a former Republican presidential candidate called S&P's downgrade from AAA to AA + Friday, «an outrageous move» given that the government can still pay the interest and principal on its bonds.

The principal on the bonds is tax - free, but you will owe income tax on some or all of the accrued interest.

When you buy U.S. Treasury or other municipal bonds from online brokerages, the brokerage acts as principal on the bond transaction.

As a result of the intervention by the Federal Reserve and the U.S. Treasury, even the bondholders of Bear Stearns stand to receive 100 % repayment of both interest and principal on their bond investments.

In general, many bond and bond funds are considered to be lower risk because, for the most part, a bond holder will receive the principal on the bond as long as the bond is held to maturity.

The biggest risk for this type of investor is the risk of default, because not only do you lose the income from the interest, you also potentially lose the principal on the bond, and whatever principal you'll receive will be the result of legal proceedings.

Not exact matches

Issuing bonds is one of the most routine things that happens in today's financial system; governments and companies get a sum of money today and pay interest on it over time, before paying back the principal at some agreed - upon future date, when the bond «matures.»

Goldman Sachs on Thursday said it reached an agreement in principal to resolve a long running government investigation into its sales of residential mortgage bonds in the run up to the financial crisis.

an interest - bearing promise to pay a specified sum of money (the principal amount) on a specific date; bonds are a form of debt obligation; categories of bonds are corporate, municipal, treasury, agency / GSE

The settlement also calls for the Malaysian side to take over all interest and principal payments on the two 2012 1MDB bonds, which charge interest rates of nearly 6 percent and are due for full repayment by 2022.

The payment cycle is not necessarily aligned to the calendar year; it begins on the «Dated Date,» which is either on or soon after the bond's issue date, and ends on the bond's maturity date, when the final coupon and return of principal payment are paid.

These firms base their ratings on the bond issuer's financial health and likely ability to make interest payments and return the bondholders» principal.

Default risk Historically, the risk of default on principal, interest, or both, is greater for high yield bonds than for investment grade bonds.

A bond represents a loan you make as an investor to a company in exchange for interest paid on the bond until maturity, when the company pays back the principal.

Bond credit ratings are the equivalent to an individual's credit score and are designed to guage the risk that a bondholder will not receive a portion or all of the interest and principal payments they are due on a bBond credit ratings are the equivalent to an individual's credit score and are designed to guage the risk that a bondholder will not receive a portion or all of the interest and principal payments they are due on a bondbond.

Highly rated companies that are financially strong and have massive amounts of cash on their balance sheets — think Microsoft, Exxon, etc. — can typically offer bonds with lower yields since investors are confident that the companies won't default (i.e., miss interest or principal payments).

An issuer may default on payment of the principal or interest of a bond.

Bond investments are subject to interest - rate risk (the risk of bond prices falling if interest rates rise) and credit risk (the risk of an issuer defaulting on interest or principal paymenBond investments are subject to interest - rate risk (the risk of bond prices falling if interest rates rise) and credit risk (the risk of an issuer defaulting on interest or principal paymenbond prices falling if interest rates rise) and credit risk (the risk of an issuer defaulting on interest or principal payments).

Many individual bondholders believe the implications of interest rate fluctuations don't impact them because they'll receive their principal value on an individual bond if held to maturity.

When you look at a bond it's very easy to tell what you get back, it says it right on the bond, it says when you get the interest payments and the principal.

The insurance companies have promised to make timely interest and principal payments on any bonds covered by insurance if Puerto Rico defaults, said Rob Williams, director of income planning at the Schwab Center for Financial Research.

At Swanling Innovations, we're trying to base our work on the same concept; the principals of bonding and giving children a sense of security.

In 2002, Bond was on leave from his job as principal of Heath High School in Paducah, Kentucky, where a student shot eight students in 1997, killing three.

As of 2015, the LAO reports, the state still owes more than $ 50 billion in principal and interest on K - 12 school facility bonds going back to 1988.

Studies suggest that optimally, a principal needs to be at the helm for at least five years to establish bonds of trust and have changes take root.69 On average, however, schools experience principal turnover every three or four years.

These funds account for pledged revenues and payments of principal, interest, and related fees on any alternate bonds.

Principal Brian Rainey said home base teachers form close bonds with students — in some cases they even take on the role of a surrogate parent.

Recipients get information about firms through on - site visits, personal interviews, reviews of licenses, stock ownership, equipment, bonding capacity, work completed, resume of principal owners, financial capacity, and type of work preferred.

On January 1, 2010 you will receive a lump sum principal payment for the first maturing bond.

What it means: This yield measure represents the weighted average YTM of the bonds in the fund as of a date, assuming that the bonds will be held to maturity and that all coupon payments and the final principal payment will be made on schedule.

an interest - bearing promise to pay a specified sum of money (the principal amount) on a specific date; bonds are a form of debt obligation; categories of bonds are corporate, municipal, treasury, agency / GSE

With corporate bonds, there is some recovery of principal — not all of the principal, of course, but 40 % on average.

With a bond, all that you can hope to get is your principal and interest paid on a timely basis.

Some retirees use the straight - forward strategy of leaving the principal in their retirement accounts untouched and spending only the dividends on stocks and the interest on bonds or certificates of deposit (CDs).

Treasury receipt: A type of zero coupon bond representing only the principal payment on a Treasury Bond with twenty years to maturbond representing only the principal payment on a Treasury Bond with twenty years to maturBond with twenty years to maturity.

The bond issuers promise to pay you back for the full loan amount, also called par value, face value, maturity value or principal, and usually with regular interest payments on the par value.

When you purchase a municipal bond, you are lending money to a state or local government entity, which in turn promises to pay you a specified amount of interest and return the principal to you on a specific maturity date.

In order to determine the constant yield to maturity on a bond, it is necessary to determine a constant discount rate that must be applied to each and every payment on the bond (principal and interest) in order to produce an aggregate value (as of the issue date) that is equal to the issue price of the bond.

«You want to make sure you get your principal back on the fixed - income side,» says Hank Cunningham, fixed - income strategist at Odlum Brown Limited and author of In Your Best Interest, a guide to Canadian bonds.

The total return on bonds consists of interest income plus or minus the change in price of the principal amount.

Only bonds that have not previously defaulted on principal and or interest are listed.

On October 1, 2014, SunAmerica High Yield Bond Fund (SHNAX) becomes SunAmerica Flexible Credit Fund, and that simultaneously make «certain changes to their principal investment strategy and techniques.»

E * TRADE Securities may act as principal or agent on any bond transaction.

Credit risk is the likelihood that the bond issuer (corporation, state or local government agency, etc.) will be able to repay the principal and interest on the bond in a timely manner.

When you buy an individual bond, you buy a fixed income investment that pays you a specific fixed interest and «promises» to return you your principal when due — i.e. on the date when the bond is matures.

The muni bond has several maturity dates in which a portion of the principal comes due on a separate date until the entire principal is repaid.

The annual percentage rate of interest paid on the inflation - adjusted principal of a specific issue of notes or bonds.

2 Treasury Inflation - Protected Securities (TIPS) are Treasury bonds that are adjusted to eliminate the effects of inflation on interest and principal payments, as measured by the Consumer Price Index (CPI).

The bond is a debt security, under which the issuer owes the holders a debt and (depending on the terms of the bond) is obliged to pay them interest (the coupon) or to repay the principal at a later date, termed the maturity date.

Youâ $ ™ d likely not recover all your principal in your bond either, but it could be in the 20 cents to 50 cents on the dollar range.»